US digital dollar: Will fiat currency ride the crypto wave? Two major research projects are under way to see if the US central bank should begin minting digital money. EXCLUSIVE Japan beefs up diplomatic efforts on regulating digital currency - sourcesJapan is beefing up its diplomatic efforts to regulate digital currencies globally, three officials told Reuters, a sign of the government's growing alarm that a proliferation of new forms of private money could upend the financial system. Fed's Powell 'legitimately undecided' on central bank digital currencyFederal Reserve Chair Jerome Powell on Thursday said he had not made up his own mind on the pros and cons of a central bank digital currency, but he would want authorization from Congress before taking any action to create one. Powell says a Fed digital currency could undercut need for cryptocurrenciesFederal Reserve Chair Jerome Powell on Wednesday said one of the stronger arguments for the U.S. central bank to set up a digital currency is that it could undercut the need for private alternatives such as cryptocurrencies and stablecoins.